Factors that impact the delivery of distributed energy

Distributed energy technologies are becoming increasingly important in the energy supply systems of many countries because of the need to provide sustainable access to energy across the globe. Here are a few influences that will need attention to enable smoother delivery of distributed energy projects.

The integration of renewable energy in the
transmission and distribution systems is due to its potential to mitigate
congestion in transmission lines, reduce impacts of electricity price
fluctuations, strengthen energy security and provide greater stability to the
electricity grid. Despite this tremendous prospect, the distributed electricity
model has both advantages and disadvantages relative to the traditional model.

Energy in any form is no doubt one of the
major drivers of the socioeconomic development of every nation, and its impact
in this regard cannot be overly emphasised. In comparison to the centralised
model, renewable energy technologies have a huge role to play – most especially
in the contribution of electricity to various sectors and facets of everyday
life including education, health, agriculture and housing.

The positive spinoffs of access to energy
is especially true in rural areas of developing countries that are unserved and
under-served. For example, in rural areas without electricity services, this
distributed model may be the only option, as the costs of extending the centralised
grid may be prohibitive. Similarly, in areas where the centralised grid is
already installed, distributed generation can improve grid resilience by
providing reliable electricity.

The use of renewable resources in
distributed energy is an environmentally friendly approach to providing access
to reliable electricity that is also a medium to mitigate climate change
related issues. It can also provide a path for direct private investment in new
generation. It has helped in increasing agricultural productivity, crop
irrigation, preservation of farm produce, and agro-processing.

The extent of the benefits include helping
in the reduction of rural-urban migration for reasons of getting employment and
better livelihoods. Thus, access to electricity from distributed generation
based on renewable energy technologies is very crucial to economic growth and
development.

Challenges associated with distributed electricity

The positive aspects outlined above of
investing in distributed resources are not without challenges. The negative
aspects are categorised into four areas: namely political, socio-economic,
financial, and technical and environmental factors.

1.
Political

Political barriers are the result of any
kind of political instability, unrest, war or changes in policy, leadership or
legal frameworks, which can pose a significant challenge to the implementation
of renewable energy projects. Where a high probability of occurrence exits,
these barriers may be hard to mitigate. However, continuous involvement and
consultation with local authorities during the development and implementation
of renewable energy projects is one strategy to adopt.

2.
Socio-economic

Socio-economic barriers could be in the
form of public resistance (including ‘not in my backyard’ and wanting to wait
for grid-tied electricity). Other types of socio-economic threats are the risk
of non-payment of electricity bills, the risk of unpredictable electricity
demand, and the risk of low level of social acceptance as well as theft and
vandalism to assets.

3.
Technical and environmental

Technological and performance barriers
could be in the form of technical malfunctions, defects, or failures of the
project’s systems or parts. The reasons for such problems could be poor quality
of components, inadequate installation skills, or lack of maintenance
knowledge, unfamiliarity with the technology, and transmission losses, among
others.

4.
Financial

Financial factors could be in the form of a
high foreign exchange rate or lack of access to finance for investment in
renewable energy. In this regard, access to finance in this market requires
constant innovative approaches to break through this challenge. One way of
addressing this is adopting a PublicPrivate-Partnership approach where the
government creates the enabling environment for the investments to thrive. This
is something to consider as it is already boosting renewable energy investments
and paving the way for rural electrification in Nigeria.

In dealing with socio-economic, technical
and environmental barriers, regardless of the size of the project, community
and relevant stakeholder engagement should be carried out at all stages of the
project. It is open and proactive engagement that will result in the buy-in and
active involvement of communities as well as stakeholders; while taking into
consideration gender mainstreaming, research and capacity building, and
compliance with all environmental regulations. There is also a need to ensure
standardisation in the procurement and installation of renewable technology
components. ESI

About the authors

Dr Sanusi Ohiare is
the executive director of the Rural Electrification Fund at the Rural
Electrification Agency in Nigeria. He oversees the mobilisation and
operationalisation of the Fund with the objective of promoting and supporting
access to a reliable electricity supply for rural dwellers in Nigeria.

Emecho Ted is the
environmental and sustainability advisor to and research analyst for the
executive director of the Rural Electrification Fund at the Rural
Electrification Agency in Nigeria.